Tesla Targets Battery Innovation to Reduce EV Costs

Leading EV car maker Tesla Motors Inc is preparing to release details about a proposed "Gigafactory," which Tesla's billionaire entrepreneur Elon Musk says will be key to the company’s goal of producing an electric vehicle that will cost about $35,000.

Musk has recognized that batteries are the most expensive part of an electric vehicle. Currently, battery components are made in separate factories with one factory making electrode powders out of raw materials, while a different factory assembles the cells, and another factory is used to package the cells into complete battery packs. Tesla's Gigafactory is expected to consolidate battery production in one location.

This month Tesla Motors posted better-than-expected fourth-quarter results and said deliveries of its Model S electric sedan would surge more than 55 percent this year. At present, the cheapest Model S sells for $72,000, and the price can rise beyond $100,000 for some packages.

Tesla says its growing network of superchargers and service centers will help spur more sales this year in the United States, and it is also expecting big sales in Europe and China. The company anticipates sales will hit 35,000, which is about 55 percent higher than this year.

"The Gigafactory will allow us to achieve a major reduction in the cost of our battery packs and accelerate the pace of battery innovation," explained Musk in a shareholders letter. "Working in partnership with our suppliers, we plan to integrate precursor material, cell, module and pack production into one facility. With this facility, we feel highly confident of being able to create a compelling and affordable electric car in approximately three years."

That is true @betajet...if they spoke English (as a native language) I would had moved there in a hearbeat, great society to live in, democtratic, honest and caring...when I was recently in Oslo I heard stories about negative unemployment in engeering...they do not have enough people to do what they want to do!

Gee, from what you say it sounds like Norway is setting a good example of how to use natural wealth to help their citizens. So many other countries in the same position transfer their wealth into as few pockets as possible.

That could be due to the price of electric vehicle in Canada even with incentives and the large distances of course.

I would have seriously considered a Volt but the only "discount" models in Canada were top of the line models and the ROI was not there.

I have looked at importing a slightly used one from the U.S. where I can get one in the very low 20's. I figure I can save $7500 over the life pretty easily in fuel and it does have the "neat" factor though cool would be pushing it.

Norway is a very bad example for anything...very rich, most things are government sponsored who has a headache deciding how to spend their trillon dollar oil fund across 4 million people...GDP per capita in the highest in Europe, the next country is 40% below them...try Canada instead, no electric cars in the cold north as far as I can tell (I live here albeit in relatively warm Vancouver)

But you didn't mention that less than 1% of the population drives an electric vehicle and the tax incentives in Norway for buying anelectric car are among the richest in the world. As far as meeting the needs I think that 90% is closer to 49% of the population. Lithium-ion and lead acid batteries don't like cold temperatures and loose their power and reserves quickly as the temperature goes below freezing. You see a lot of hybrids here in Winnipeg but very, very few all electric.

Well, the country with the most electric cars per capita is... Norway. And Tesla model S was the best-selling new car there in September 2013.

Regarding needing to drive 200 km/day, I'll quote Ed Begley Jr. from Who Killed the Electric Car? (2006): "Electric cars aren't for everyone: they can only satisfy the driving needs of 90% of Americans."

Electric vehicles will never truly be successful until someone can come up with a cheap power source that can go 200km/125 miles between charges with the heat on at -30C/-22F, -18C/0F or even at 0 degrees C/32F. Electric vehicles are nice in California but what about the rest of us that need to have the heater on and do 200km of driving a day and not 30km/18 miles in the cold.

All the renewable sources of energy technology have the same story. There are peaks and dips which can be correlated to the elections/oil prices/conflicts etc. I hear about new innovations in solar but hardly any about the fuel cells.